What is a Surety Bond?
A surety bond is a contract among at least three parties: the principal, the obligee, and the surety. Through this agreement, the surety agrees to make the obligee whole if the principal defaults in its performance of its promise to the obligee.
Performance Bonds assure that a contract will be performed according to its terms and specifications. In the event a contractor defaults, these bonds generally obligate the surety to either: finance the contractor, undertake the completion of the project, tender a new contractor to the owner or pay the bond penalty.
Payment Bonds/ Labor and Material Bonds that assure a contractor will make appropriate, prompt and full payments for labor and materials provided for a project.
Maintenance Bonds assure a project will remain free of defects in workmanship or materials for a specific period of time.
License and permit bonds typically guarantee a corporation or individual will operate in accordance with governmental statutes, regulations, and ordinances. There are many of different types of license and permit bonds guaranteeing various obligations.
Typical Bonds written include, but are not limited to:
Adoption Facilitator Bonds, Airline Reporting Agency Bonds, Auctioneers Bond, Collection Agency Bonds, Community Care Bonds, Contractors License Bonds, Dealer Bonds, Defective Title Bonds, Department of Motor Vehicle Bonds, Employment Agency Bonds, ERISA Bonds, Escrow License Bonds, Farm Labor Contractor Farm Labor Contractor Bonds, Floating Home Bonds, Fundraiser Bonds, Garment Industry Bonds, ICC Broker Bonds, Immigration Consultant Bonds, Mortgage Broker Notary Bonds, Process Server Bonds, Sales Tax Bonds, Talent Agency Bonds, Tax Preparer Bonds, Telephone Solicitor Bonds, Union Welfare Bonds, Union Welfare Bonds, Utility Deposit Bonds, Waste Hauler Bonds, Yacht and Ship Broker Bonds, etc.
Court bonds are guarantees required by courts at various points in legal proceedings. These include appeal bonds, lis penden bonds, injunction bonds, cost bonds, administrator bonds, lost note bonds, stop notice bonds, release of lien bonds, attachment bonds, etc.